The facts for this problem are presented on the Facts tab of this workbook. Instructions - Your solutions should be clearly labeled on the Solutions tab of this workbook. For the first quarter of 2017, do the following. (a) Prepare a sales budget. This is similar to Illustration 21-3 on page 1022 of your textbook. (b) Prepare a production budget. This is similar to Illustration 21-5 on page 1023 of your textbook. (c) Prepare a direct materials budget. (Round to nearest dollar) This is similar to Illustration 21-7 on page 1024 of your textbook. (d) Prepare a direct labor budget. (For calculations, round to the nearest hour.) This is similar to Illustration 21-9 on page 1027 of your textbook. (e) Prepare a manufacturing overhead budget. (Round intermediate amounts to the nearest dollar.) This is similar to Illustration 21-10 on page 1027 of your textbook. (f) Prepare a selling and administrative budget. This is similar to Illustration 21-11 on page 1028 of your textbook. (g) Prepare a budgeted income statement. (Round intermediate calculations to the nearest dollar.) This is similar to Illustration 21-13 on page 1029 of your textbook. (h) Prepare a cash budget. This is similar to Illustration 21-17 on page 1032 of your textbook. (You will need to prepare schedules for expected collections from customers and expected payments to vendors first. See Illustrations 21-15 and 21-16 on pages 1031 & 1032 of your textbook for guidance.) Rules: * Use Excel's functionality to your benefit. Points are lost for lack of formula. * Use proper formats for schedules, following the referenced textbook examples. * Use dollar-signs and underscores where appropriate. * Double-check your work! Verify your formula and logic! Grading Guidelines: Effective Use of Excel 40% Facts, Logic 20% Completeness 30% Spelling, Punctuation, Value Format 10%

Serious Business, Inc. The company is preparing its budget for the coming year, 2017. The first step is to plan for the first quarter of that coming year. The following information has been gathered from their managers. Sales Information Period Units November 102,000 Actual Grading guidelines are on the instructions tab.

December 91,000 Actual January 100,000 Planned February 101,000 Planned March 103,000 Planned April 112,000 Planned May 123,000 Planned Unit selling price $11.00 Finished Goods Inventory Planning The company likes to keep 10% of the next months unit sales in finished goods ending inventory. Accounts Receivable & Collections Sales on Account 100% Collections Activity Month of Sale 80% Month after Sale 20% Balance at 12/31/16 $185,000.00 Materials Inventory Costs & Planning Direct Materials Amount Used per Unit Cost Metal 2 lb $1.00 lb The company likes to keep 5% of the material needed for the next month's production in raw materials ending inventory. Accounts Payable & Disbursements Purchases on Account 100% Payment Activity Month of Purchase 40% Month after Purchase 60% Balance at 12/31/16 $120,000 Direct Labor & Costs Time per Unit Production 12 minutes Pay Rate/Hour $6.00 Manufacturing Overhead Costs Variable costs per direct labor hour Indirect materials $0.25 Indirect labor 0.35 Utilities 0.45 Maintenance 0.25 Fixed costs per month Salaries $42,000 Depreciation 16,800 Property taxes 2,675 Insurance 1,200 Janitorial 1,300 Selling and Administrative Costs Variable costs per unit sold $1.20 Fixed costs per month Advertising $15,000 Insurance 14,000 Salaries 72,000 Depreciation 25,000 Other fixed costs 3,000 Income Taxes Accrued on Monthly Net Income 40% rounded to nearest dollar Amounts Accrued Q4 2016 paid January 2017 $200,000 Cash and Financing Matters Cash Balance, 12/31/2016 $74,000 2017 Minimum Balance Required 575,000 Monthly Dividends $1.80 per share Outstanding Shares 5,000 Line of Credit Limit None Borrowing Increment Required $1,000 Interest Rate 8% Draws First of Month Repayments Last of Month Interest accumulates to the loan balance and is paid in full with each repayment. Additional Item Fixed Asset Purchase $361,000 Month February

Search in Sheet Home | Layout Tables Charts SmartArt Formulas Data Review Edit Alignment 11A A abc Fill : Calibri (Body) | | | | Wrap Text- General conditional Formatt Clear 00 Insert Delete Format Themes Aa H22 1 Serious Business, Inc. The company is preparing its budget for the coming year, 2017. The first step is to plan for the first quarter of that coming year. The following 2 inforrmation has been gathered from their managers 4 Sales Information 5 Period 6 November 7 December 8 January Units 102,000 Actual 1,000 Actual 100,000 Planned 101,000 Planned 103,000 Planned 112,000 Planned 123,000 Planned 10 March 11 April 12 May 13 Unit selling price 14 15 Finished Goods Inventory Planning Grading guidelines are on the instructions tab. 11.00 The company likes to keep 10% of the next month's unit sales in finished goods ending inventory. 17 18 Accounts Receivable & Collections 19 Sales on Account 20 Colections Activity 21 Month of Sale 100% 80% 20% $185,000.00 Month after Sale 23 Balance at 12/31/16 24 25 Materials Inventory Costs & Planning 26 Direct Moterials 27 Metal Amount Used per Unit Cost The company likes to keep 5% of the material needed for the next month's production in raw materials ending inventory. 28 29 30 Accounts Payable& Disbursements 31 Purchases on Account 32 Payment Activity 33 Month of Purchase 34 Month after Purchase 35 Balance at 12/31/16 100% 60% 120,000 37 Direct Labor & Costs 38 Time per Unit Production 39 Pay Rate/Hour 40 12 minutes 6.00 Instructions FactsStudent's Solution HE Normal View Select destination and press ENTER or choose Paste Sum-0